Twenty Years Have Gone by and the Result Is Trillions in Debt

Let’s look at the cold hard facts when it comes to debt. Well, at least what we can see because we have no idea how many trillions are lost, stolen, or hidden. The US national debt in 2000 was $5.6 trillion. Today the US national debt is $32.7 trillion. Debt per taxpayer in 2000 was $54,419. Debt per taxpayer in 2023 is $253,686. The US federal debt to GDP was 56% in 2000 and is now 119% in 2023. If we look at corporate debt, consumer debt, and federal debt today we are near $100 trillion. This number stood at $26 trillion in 2000. The US is drowning in debt for the last 23 years, and it is our politicians and central bankers that are at fault. To make it worse, there is no end in sight. Not to mention some of this debt will eventually need to be refinanced at higher rates.

Deficit spending refers to a government’s practice of spending more money than it collects in revenue during a specific period, usually a fiscal year. This results in a budget deficit, which is the difference between government expenditures and government revenues. Deficit spending often leads to an increase in the national debt, which is the total amount of money that a government owes to external creditors and internal lenders.

To be reelected and to stay in power to enrich themselves our politicians talk about stimulating the economy, infrastructure investment, social programs, war and defense, and a stable economy. Everyone is ok with this when their stocks, 401(k)s, and their real estate appreciate. What will the public say when this stops? What will the people of the United States say when our currency is printed so much that its value is next to nothing? Fake money printed out of thin air supporting fake markets with unlimited debt is a game of musical chairs. Eventually, the music stops and there aren’t enough chairs for everyone. The music is getting close to stopping. It is inevitable that such a large system based on deficit spending and debt bursts. More fake money and more debt will not fix our problems. Will you be left without one of those chairs?

Governments often manage deficit spending by issuing bonds and borrowing money from various sources, including domestic and foreign investors. The decision to engage in deficit spending is often influenced by economic conditions, fiscal policies, political considerations, and the overall goals of the government. This practice has been abused for decades. Besides our government being run by a bunch of dingbats, there has been a step-by-step program instituted over the past 23 years to get us to where we are today. And folks, we are in a hole so deep that we will never get out of it. The question is how long before the economy and the markets crumble underneath the trillions in debt and derivative leverage that we are experiencing today. And it’s not only here; every central bank in the world is doing it. They are all printing and spending money that they don’t have.

George W. Bush institutes the War on Terror

The War on Terror is a term commonly used to describe the global campaign led by the United States and its allies to combat terrorism, particularly in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon in the United States. The term was popularized by the administration of US President George W. Bush and has been continued by subsequent administrations. Key aspects of the War on Terror include military operations, counter-terrorism efforts, homeland security, global cooperation, and countering extremist ideologies. The War on Terror has been criticized and controversial. Regardless it has cost trillions.

The subprime mortgage crisis was another cause of trillions more of debt

The subprime mortgage crisis, also known as the housing market crash of 2008, was a significant financial crisis that primarily originated in the United States and had far-reaching global implications. It was characterized by a collapse in the housing market, a surge in mortgage defaults, and a severe disruption of the financial system. The crisis played a major role in triggering the broader global financial crisis of 2008–2009.

The subprime mortgage crisis had profound and lasting effects on the global economy. It resulted in a severe recession, significant job losses, and a decline in consumer and investor confidence. The subprime mortgage crisis was based on Wall Street greed and ultimately cost the US trillions more to avoid economic and market collapse.

Quantitative Easing is introduced by Ben Bernanke

QE1 refers to Quantitative Easing 1, which was the first round of a monetary policy tool implemented by the US Federal Reserve in response to the global financial crisis of 2008–2009. Quantitative Easing is an unconventional monetary policy used by central banks to stimulate the economy when traditional monetary tools, such as lowering interest rates, become less effective.

QE1 took place from November 2008 to March 2010 and involved the Federal Reserve purchasing large quantities of financial assets, primarily longer-term government and mortgage-backed securities, from the open market. The goal of QE1 was to inject liquidity into the financial system, lower long-term interest rates, encourage borrowing and spending, and support economic recovery. QE1 again was used to avoid economic and market collapse. Trillions more were printed and more debt was taken on.

Another round of Quantitative Easing in 2010 ensues

QE2 refers to Quantitative Easing 2, which was the second round of the quantitative easing program implemented by the US Federal Reserve. QE2 was launched in November 2010 as a continuation of the Fed’s efforts to stimulate the economy and support economic recovery in the aftermath of the global financial crisis and the subsequent Great Recession. QE2 involved asset purchases, monetary stimulus, deflation concerns, and lower yields. Obviously, we are simplifying things but you get the picture. QE2 was just another fancy program to save Wall Street but ultimately piling on trillions more in debt and further hurting our purchasing power.

Fed implements Operation Twist in another attempt to save the economy

Operation Twist is a name given to a type of monetary policy operation performed by the Federal Reserve Bank. It involves buying and selling government bonds to provide monetary easing for the economy, although it’s not quite as aggressive as another type of monetary policy called quantitative easing. Operation Twist was first introduced by the Federal Reserve in the early 1960s and was later reintroduced in a modified form during the aftermath of the 2008 financial crisis. The goal of Operation Twist is to lower long-term interest rates while raising short-term interest rates to encourage borrowing and spending, support investment, and stimulate economic growth. Operation Twist is just another feeble attempt to cover up the obvious. The obvious is that the system is fake and insolvent without more shenanigans and fake money.

Yes, QE3 started in 2012 and here we go again

QE3 refers to Quantitative Easing 3, which was the third round of the quantitative easing program implemented by the US Federal Reserve. QE3 was announced in September 2012 as part of the Federal Reserve’s ongoing efforts to support economic growth and reduce unemployment in the aftermath of the global financial crisis and the subsequent slow recovery. Key features of QE3 included asset purchases, monetary stimulus, and unemployment reduction. Wow, I guess you need to be really smart to print trillions of dollars of fake currency and then rescue the banks and buy the government’s fake bonds that will sit on the Fed’s fake balance sheet. I guess that’s why Ben Bernanke won the Noble Prize. What a joke. Regardless all of these programs weaken the financial system ultimately and destroy our dollar. QE3 ended in 2014.

All those trillions lasted until 2019 when issues start again

The repo market, short for repurchase agreement market, experienced significant volatility and disruption in September 2019. A repo is a financial transaction in which one party (usually a financial institution) sells securities to another party (often a central bank or another financial institution) with an agreement to repurchase the securities at a later date. Repos are used to raise short-term funds by using securities as collateral. Disruptions in the repo market were blamed on liquidity shortages, quarter-end pressures, regulatory changes, and financial institution practices. And amazingly enough, it resulted in more Fed intervention and more fake money buying more fake assets to hold the fake market up.

The convenient COVID pandemic of 2020 meant trillions more

The timely COVID-19 pandemic led to widespread economic disruptions around the world, prompting many governments to implement various forms of economic stimulus to support individuals, businesses, and the overall economy. These stimulus measures were designed to mitigate the negative impact of the pandemic, prevent a deeper economic downturn, and facilitate a faster recovery. Different countries adopted different strategies based on their economic and social circumstances. COVID resulted in trillions more. It was a tremendously timely reason to pump tens of trillions into the system.

If someone weighs 400 pounds you have to realize something. It takes years of a poor diet and a lack of exercise to achieve those numbers in most of cases. It doesn’t happen overnight is the point. The situation the US is in today has taken decades to build up. It has been decades of financial abuse that leaves us in a very difficult situation. Our country needs to print hundreds of trillions more to avoid an economic and market collapse. It is no different than the last 23 years but now the ante is raised. We just discussed above all of the programs that have been instituted to get us to where we are today. The big difference today is that interest rates are much higher than they have been for a very long time. It makes our huge debt even more deadly. It is going to cost way more to service this debt. I guess the government can print more to service the higher debt and corporations can pass higher costs along to the customer because of their higher debt costs. Do you see how this is all feeding on itself now?

When our country prints hundreds of trillions more to do more deficit spending, support the fake markets, and promote political agendas like climate change, our currency will lose more significant buying power. Our currency will be worth next to nothing. What’s the next fake money program going to be called? So you may say “You can just buy risky technology stocks to keep up with inflation.” Well, if you want to gamble with your entire nest egg that’s up to you. Place your bets. It is all fine and dandy when things are working. Any person with common sense would realize that no speculation with great results lasts forever. Why do you think the casino wants you to keep playing? Eventually, the house wins. The house in this equation is the Fed and the Wall Street banking system.

The only form of money that has ever survived in its original form is gold. There is a strong case to be made that silver as well has played an important role in the historical monetary system back to 600 BC with the Lydian Lion. Our country is fighting for its life on many fronts. Our economy and financial markets are dependent on printing trillions more of magic money. This process has taken a long time to get us to this point. It could end immediately or gradually. Regardless we all know the eventual outcome. It would be a great idea to hedge your bets. Convert some of your paper bank assets or market assets into physical gold and silver while you still can. No matter what happens you will at least always have that.

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